Blog

‘Cash in hand’ payments to workers no longer tax deductible
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The ATO has reminded employers that any ‘cash in hand’ payments made to workers from 1 July 2019 will not be tax deductible. ‘Cash in hand’ refers to cash payments to employees that do not comply with pay as you … Read More

How to Make Sure You Don’t Lose Your QBCC Licence – Part 2
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The last part of the reforms the QBCC brought in with the Minimum Financial Requirements (MFR) will take effect on 1 January 2020. This will affect all self-certification categories (SC) 1-2 and category 1-3 licensees by requiring them to undertake Annual … Read More

How to Make Sure You Don’t Lose Your QBCC Licence – Part 1
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A QBCC license holder who is unable or does not know how to meet the new QBCC reporting requirements might find his license cancelled or suspended. When the QBCC suspended a major construction company’s licence in May it sent shock … Read More

New rules for immediate write-offs
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Small business entity (‘SBE’) taxpayers who choose to depreciate their assets under the simplified depreciation rules are entitled to an immediate deduction with respect to low-cost assets in the year they are first used or installed ready for use for … Read More

Keep more customers with a Communication Plan
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Communication with existing customers is generally neglected by businesses as they often focus their marketing and advertising on communicating with potential customers instead. All businesses should be in contact with their existing customers a minimum of 12 times per year … Read More

Scammers impersonate ATO phone numbers
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The ATO is warning that scammers have adopted ‘Robocall’ technology to target taxpayers across the country. Assistant Commissioner Gavin Siebert said: “Scammers are sending pre-recorded messages in record numbers and are manipulating caller identification so that your phone displays a … Read More

Calculate the True Value of a Customer
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By calculating the true value of a customer, or potential customer, it places a value on the total sales and profits generated by the customer over their lifetime with the business. The actual numbers can be astounding. For example, although … Read More

ATO warning regarding annual leave loading and OTE
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The ATO has recently warned employers that it considers that annual leave loading should normally be part of ordinary time earnings (‘OTE’) for superannuation guarantee (‘SG’) purposes, unless it is referrable to a “lost opportunity to work overtime”. Therefore, if … Read More

Continued focus on the cash economy
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ATO Assistant Commissioner Peter Holt has announced that, in the 2019/20 financial year, the ATO will be visiting a further 10,000 small businesses across the country, including up to 500 small businesses in Tasmania. He further said that businesses that … Read More

Non-compliant payments to workers
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The rules for claiming deductions for payments to workers are changing. From 1 July 2019, businesses can only claim deductions for certain payments made to workers where they’ve met the Pay As You Go (‘PAYG’) withholding obligation for that payment. … Read More

Changes to the small business instant asset write-off
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On 29 January 2019, the Prime Minister announced that legislation will be introduced to: extend the small business instant asset write-off by 12 months to 30 June 2020; and increase the write-off threshold from less than $20,000 to less than … Read More

Claims for home office expenses increased
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The ATO has updated the hourly rate taxpayers can use to determine deductions for home office expenses from 45 cents to 52 cents per hour for individual taxpayers, effective 1 July 2018 (i.e., from the 2019 income year). According to … Read More

ATO contact regarding business cars and Fringe Benefits Tax (‘FBT’)
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The ATO has recently advised that it will be contacting taxpayers (and tax agents on behalf of their clients) that have been identified as having cars registered in their business name who have not lodged an FBT return. The ATO … Read More

Increased scrutiny of home office claims
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Last year, 6.7 million taxpayers claimed a record $7.9 billion in deductions for ‘other work-related expenses’, which includes home office expenses. Reportedly, due to a high number of mistakes, errors and questionable claims for home office expenses, the ATO has … Read More

Delay Sales & Realisation of Assets
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For businesses accounting for income on the cash basis, delaying the receipt of income from May or June to July results in tax savings for two reasons: The income is included in the next financial year, not this financial year. … Read More

Utilise business Goodwill to Pay out Your Private Mortgage
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This tax strategy enables business owners to utilise the value of their business goodwill to pay out their private mortgage and convert a non-deductible mortgage into tax deductible debt. The average Australian family is paying over $25,000 interest per year … Read More

The Company Tax Cut Saga
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In the last week of the August Parliamentary sittings, the controversial corporate tax cut plan for the big end of town (i.e., companies with an aggregated turnover of over $50 million) was defeated. In addition, long-awaited legislation impacting the company … Read More

Black economy recommendations will impact day-to-day business
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Editor: Recently issued draft legislation has focused on introducing new measures to manage the growing cash economy (i.e., the ‘black economy’) in light of the Black Economy Taskforce recommendations and recent Federal Budget announcements. Two of these key recommendations are outlined … Read More

ATO guide to the 5 most common Tax Time mistakes
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As Tax Time 2018 has ‘kicked off’, the ATO has profiled the five most common mistakes they see, including taxpayers who are: leaving out some of their income (e.g., forgetting a temp or cash job, capital gains on cryptocurrency, or … Read More

Advantages of Salary Packaging Private Motor Vehicles
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When a motor vehicle is used 100% for private purposes there is normally no tax deduction available on the expenditure. With this strategy an employee can generate annual tax savings of $2,500 – $3,000 pa by salary packaging their private motor vehicle with … Read More

Tax Time Tips for Small Business
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The ATO claims that it is committed to supporting small businesses and making it as easy as possible for them to understand and meet their tax obligations at tax time. Consequently, Assistant Commissioner Mathew Umina has some tips to help … Read More

How to Jumpstart Your Business
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In our Blog article 21 Steps to Eliminate Frustration In Your Business we’ve posed 21 questions to help you think about where you’re at in your business right now, and they were ‘hand-on-your-heart’ questions, I admit that. You see, often … Read More

21 Steps to Eliminate Frustration in Your Business
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Tradies and small business owners go through different business cycles and growth phases. There could be external factors that are influencing this for you. More often than not though, it’s the strategic decisions that you take which determine the success … Read More

Penalties, Fines and Interest – Are They Tax-Deductible?
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If you’ve ever wondered which, if any, penalties, fines or interest could be tax deductible, here’s the latest on this topic. Outlined below are the general rules applying to business owners, employees, investors and retirees. Penalties or fines imposed as … Read More

Mileage Claims for Jointly Owned Motor Vehicles Explained
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The ATO have confirmed that even when a vehicle is only registered in their spouses name a taxpayer is still considered to be the joint owner or lessee of the motor vehicle and eligible to claim expenses. This means where … Read More

How to Save on Tax When Transporting Heavy Equipment & Tools
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Some employees need to transport heavy or bulky equipment to and from their work place each day to perform their job. This is often the case with engineers, plumbers, electricians, builders, mechanics, defence force members, musicians and medical practitioners, etc. … Read More

Tax Strategy: Husband and Wife Partnerships
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In a typical husband and wife partnership, one partner is qualified (for example an electrician) and produces the partnership income and the other partner may be involved in administration for the partnership. Profits from the partnership are normally split 50/50 … Read More

The importance of documenting processes and systems
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Many Tradies operate with their business processes and systems in their heads. They know what they need to do each day and the way they want to get things done. Unfortunately when a business grows and staff need to be … Read More

December 2017 Practice Update
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Parliamentary update Editor: The ongoing citizenship saga in Parliament has resulted in the Government losing its one-seat majority in the House of Representatives, thanks to the resignations of Barnaby Joyce and John Alexander. By-elections have been scheduled in the relevant … Read More

November 2017 Practice Update
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Reporting of transfer balance account information Editor: The recent superannuation reforms introduced the concept of a ‘transfer balance account’, to basically record the value of member balances moving into or out of ‘retirement phase’. In order to monitor these amounts, … Read More

Taming the cash flow beast
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Imagine this: Your business sales and activities are going gangbusters, but at the end of the fortnight there is no money in the bank to pay your staff. If you’ve been there you would know how stressful a situation this … Read More

October 2017 Practice Update
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No small business tax rate for passive investment companies The Government has released draft tax legislation to clarify that passive investment companies cannot access the lower company tax rate for small businesses of 27.5%, but will still pay tax at … Read More

Do you know your business’ strengths and weaknesses?
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From time to time, companies and organisations undertake a SWOT analysis, where managers and staff look at what Strengths & Weaknesses the business has, and what Opportunities & Threats the business is facing in the current business environment. I highly … Read More

Are You Racing Against Time?
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In our last few blogs we have talked about whether or not your business is saleable and some ideas to help improve that. Here are some numbers that would scare you: With only 10% of strategies being executed, business owners … Read More

Supercharge Your Profitability
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In a recent article, we looked at when might be the best time to sell your business, what you need to have in place to make your business attractive to a buyer, and whether you and your business were actually … Read More

Top 3 Routines…That Can Kick Your Business Success Out of the Park
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When you start a new project for your clients you probably have certain routines to get them up and running. Everything runs a certain way when you do business, from quoting for the job, scheduling it in your calendar of … Read More

Cutting business costs ethically and effectively
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It’s an unpleasant reality of running a business – sometimes you’re going to have to cut costs. You only have to look at the sobering examples of Holden and Toyota announcing they’ll take their car manufacturing operations overseas, which will … Read More

Are You and Your Business Ready to Sell?
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Going into business can be a very rewarding experience, and going out of business making a profit can be even sweeter. However, it is estimated that only 21% of businesses owners ever sell their business. Many business owners believe that … Read More

How to save tax all year round
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The old adage “You don’t know what you don’t know” applies to many areas of life, including what you can claim on tax. Small business owners are generally well clued up as to what they can claim as a tax-deductible … Read More

Net Profit is King!
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Net Profit is King! Not Cashflow   Economic researchers claim that 80% of businesses go out of business in the first 5 years and 50% in the first year. These percentages are staggeringly high. Most business owners think that cash … Read More

How to turn on the money tap
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You’ll hear me talking about numbers a lot, I guess I can’t help it, being an Accountant and Financial Planner. In my article “Net Profit is King” I talked about the importance of setting healthy profit margins for your business. … Read More

5 Critical Numbers for Business – Part 2
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All Tradies know how important numbers are for their business success. In fact, without the ability to measure up the job and use these numbers to get the job done right, Bob the Tradie, who was the example we’ve used … Read More

5 Critical Numbers for Business – Part 1
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Can you imagine what a Tradie would do without a measuring tape? If you’re in the building, plumbing or painting industry, having the right measurements is absolutely critical. Without the right measurements, doors and windows wouldn’t close, plumbing fittings would … Read More

Are You Chasing Up Outstanding Invoices?
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A friend of mine, who’s running a tradie business, had a bit of a cry on my shoulder recently. He was saying how he was struggling after the holidays to pay his provider accounts and have enough to pay his … Read More

How to create a business rocket launch platform for 2017
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The beginning of the year is always so full of promise, and I’m not sure about you, but I really enjoy turning onto a new page and make a business plan for the next year. As this time is also … Read More

How to Make Your Business Holiday Proof
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Have you ever asked yourself: If you went away for a couple of months on holidays, or (heaven forbid) had an accident involving weeks in hospital, what would happen to your business? I’m sure you’ve had situations in your life … Read More

Give the B.S. in Your Business the Boot!
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  Have you been flat out lately and cursed all the non-core business activities that you need to keep up with? Wouldn’t you like to give the boot to all those activities and just be done with it? I talk … Read More

Do You Know your Numbers?
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If you don’t know your numbers in business you might as well play roulette! If you feel a little confronted by my statement, let me explain… …knowing how your business performs financially is at the front and centre of your … Read More